Predictive approaches such as virtual screening have been used in drug discovery with the objective of reducing developmental time and costs. Current machine learning and network-based approaches have issues related to generalization, usability, or model interpretability, especially due to the complexity of target proteins’ structure/function, and bias in system training datasets. Here, we propose a new method “DRUIDom” (DRUg Interacting Domain prediction) to identify bio-interactions between drug candidate compounds and targets by utilizing the domain modularity of proteins, to overcome problems associated with current approaches. DRUIDom is composed of two methodological steps. First, ligands/compounds are statistically mapped to structural domains of their target proteins, with the aim of identifying their interactions. As such, other proteins containing the same mapped domain or domain pair become new candidate targets for the corresponding compounds. Next, a million-scale dataset of small molecule compounds, including those mapped to domains in the previous step, are clustered based on their molecular similarities, and their domain associations are propagated to other compounds within the same clusters. Experimentally verified bioactivity data points, obtained from public databases, are meticulously filtered to construct datasets of active/interacting and inactive/non-interacting drug/compound–target pairs (~2.9M data points), and used as training data for calculating parameters of compound–domain mappings, which led to 27,032 high-confidence associations between 250 domains and 8,165 compounds, and a finalized output of ~5 million new compound–protein interactions. DRUIDom is experimentally validated by syntheses and bioactivity analyses of compounds predicted to target LIM-kinase proteins, which play critical roles in the regulation of cell motility, cell cycle progression, and differentiation through actin filament dynamics. We showed that LIMK-inhibitor-2 and its derivatives significantly block the cancer cell migration through inhibition of LIMK phosphorylation and the downstream protein cofilin. One of the derivative compounds (LIMKi-2d) was identified as a promising candidate due to its action on resistant Mahlavu liver cancer cells. The results demonstrated that DRUIDom can be exploited to identify drug candidate compounds for intended targets and to predict new target proteins based on the defined compound–domain relationships. Datasets, results, and the source code of DRUIDom are fully-available at: https://github.com/cansyl/DRUIDom., Author summary Drug development comprises several interlinked steps from designing drug candidate molecules to running clinical trials, with the aim to bring a new drug to market. A critical yet costly and labor-intensive stage is drug discovery, in which drug candidate molecules that specifically interact with the intended biomolecular target (mostly proteins) are identified. Lately, data-centric computational methods have been proposed to aid experimental procedures in drug discovery. These methods have the ability to rapidly assess large molecule libraries and reduce the time and cost of the process; however, most of them suffer from problems related to producing reliable biologically relevant results, preventing them from gaining real-world usage. Herein, we have developed a new method called DRUIDom (DRUg Interacting Domain prediction) to identify unknown interactions between drugs/drug candidate compounds and biological targets by utilizing the modular structure of proteins. For this, we identify the domains, i.e., the evolutionary and functional building blocks of proteins, where these potential drug compounds can bind, and utilize this information along with protein domain annotations to predict new drug targets. We have tested the biological relevance of DRUIDom on selected proteins that play critical roles in the progression of numerous types of cancer. Cell-based experimental results indicated that predicted inhibitors are effective even on drug-resistant cancer cells. Our results suggest DRUIDom produces novel and biologically relevant results that can be directly used in the early steps of the drug discovery process.